The first step in the creation of WordStream managed Ad Groups is to turn your Keyword Groups into Ad Groups. To do this, you have to move the Keyword Groups from your WordStream Dashboard to the Google AdWords section of your WordStream account.

To begin this process, simply:

Navigate - To the WordStream Explorer (the grid of folders that houses your Keyword Groups, deleted keywords, and imported keywords; located along the left side of your screen).

Right click - On a Keyword Group you've created and would like to transition into an Ad Group.

This will begin the process of transitioning your Keyword Group over to your AdWords account. WordStream will now automatically bring you to the Google AdWords section of your account. Here you'll be prompted to assign your Ad Group to a specific ad campaign (for more information on setting up an ad campaign within your WordStream account, please see the Creating Ad Campaigns tutorial):

As we can see from the dialog above, you simply drill down (by clicking on the arrow at the left of your AdWords username) and select the ad campaign you'd like to assign your new Ad Group to.

Having selected a campaign to assign the group to, you will be prompted to input the ad group settings and will then be given the option of creating text ads for your new ad group.

Creating a new ad group from within the Manage Adwords Tab is also remarkably easy. First select a campaign and select the “Ad Groups” tab. Then simply click the “Add New Ad Group” button as you can see from the dialog below.

After clicking the button input the desired settings, including the new ad group name, into the “Edit Selected Ad Group” and click “Apply.”

You'll then be presented with an "Edit Selected Ad Group" dialog, located towards the bottom of your screen. Enter your settings, click apply and the ad group will be created!

A great way to create a new ad group is to segment an existing ad group. This creates two highly targeted ad groups out of one less focused group. This is especially helpful if you have several large ad groups. Creating tightly knit groups will increase your quality score, reduce cost and allow you to create more relevant and targeted ad copy.

To split an existing ad group select the ad group that you would like to split in the Manage AdWords tab and click on the “Split Ad Group” button.

After clicking the button you will see a wizard with suggested ad groups. Simply check off the box next to the ad group you want to create and select “Create Selected Ad Groups.”

You can even copy the ad text from the original ad groups into your new ad groups by checking off the box.

The "Status" drop down offers three options for the status of your individual Ad Group:

Enabled - This means that the Ad Group is live, and that the Ad Group and changes made to it will be put into action (terms will be bid on, ads will run on the search provider in question, etc.) as soon as you publish account changes to Google.

Paused - The Ad Group is still listed amongst your campaign's Ad Groups, but your keywords will not be bid on, and your ads will not show. You can unpause an Ad Group at any time by highlighting the "Enabled" button and applying the changes.

Deleted - The Ad Group will not show on a list of keywords where "show all but deleted" (or for WordStream, "hide deleted") is checked. Note: deleting a keyword can be undone (in the same way as for unpausing a keyword, as mentioned above).

This field determines the most you are willing to pay for each click on your advertisements. If you checked the "Content Bids" box when you were creating your ad campaign, this number will only apply to your search ads.

If you did check the "Content Bids" box, this field will determine the maximum you're willing to pay for each click in the content network only. Typically, content clicks are worth considerably less than search clicks (due to the vast differential in user intent).